Within the context of Pag-IBIG Fund housing loans, a co-borrower is a person who shares the duty for repaying the mortgage alongside the first borrower. This particular person’s revenue and creditworthiness are thought of throughout the mortgage utility course of, successfully rising the applicant’s borrowing capability. For instance, a partner, mother or father, or shut relative might act as a co-borrower to assist a mortgage applicant qualify for a bigger mortgage quantity than they might acquire independently.
The inclusion of an extra celebration within the mortgage settlement provides a number of benefits. It may possibly considerably enhance the probabilities of mortgage approval, particularly when the first borrower’s revenue is inadequate or their credit score historical past is proscribed. Furthermore, it permits for the acquisition of a extra useful property, fulfilling housing wants that may in any other case be unattainable. Traditionally, this mechanism has performed a significant function in enabling extra Filipinos to attain homeownership.
